Post Office Post Office Monthly Income Scheme (POMIS) is the highest earning, low risk and guaranteed return saving scheme offering interest at the rate of 7.4% per annum. In this scheme, investors can deposit every month. The best thing about this scheme is that no TDS is deducted from the interest received. This scheme—like other post office schemes—is recognized by the Ministry of Finance. Therefore there is no risk on investment.
How much investment can you start with?
As per your affordability, you can open a Post Office MIS account with a nominal investment of Rs 1,000 and in multiples of Rs 1,000. The maximum investment limit in a single account in Post Office MIS account is ₹9 lakh. Whereas the maximum deposit limit for joint account is up to ₹ 15 lakh.
maturity period
The maximum lock-in period for Post Office MIS account is 5 years. After the scheme matures, the investor can withdraw the invested amount or reinvest it. The investor cannot withdraw the deposit amount before the expiry of 1 year from the date of deposit. If the investor withdraws the investment amount before the end of the lock-in period, a penalty is imposed. If the account is closed before three years from the date of account opening, 2% amount is deducted from the principal amount and if closed before 5 years, 1% amount is deducted from the principal amount.
nominee
The investor can nominate a beneficiary so that he can claim the benefits and funds after his demise. It is important to note that a nominee can be appointed even after the account is opened.
Eligibility to open MIS account
To open a POMIS account, the investor must be a resident Indian. Non-Resident Indians (NRIs) are not eligible to open Post Office MIS account. A resident Indian can also open a POMIS account on behalf of a minor child aged 10 years and above. However, the child can raise funds only after he attains the age of 18 years.
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